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emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3166
Experience:  IRS licensed Enrolled Agent and tax instructor
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I am currently 64 years old and will turn 65 in February. As

Customer Question

I am currently 64 years old and will turn 65 in February. As I am also retired military, my military healthcare insurance, TRICARE, will be replaced by Medicare as my primary healthcare insurance. TRICARE will then become secondary to Medicare. I am interested in making sure that my taxes at the end of the year essentially balance out so that I neither owe additional taxes nor am due a refund. To achieve this, I currently pay a 10% tax on my Social Security payments. This essentially has caused my taxes to balance out by the end of the year. I am concerned what effect, if any, Medicare will have on my tax situation. Does Medicare subtract from my earned income or does it stay the same? Should I continue to tax my social security payments at the same rate or can I reduce them and still have a balanced tax at year end.
Please advise.
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.

Hi. My name is ***** ***** I will be happy to help you.

Medicare deducted from your social security paycheck will not affect your taxable liability. However turning 65 also means that your standard deduction will increase, which means you most likely get a little refund if nothing else changes, especially if you have 10% taking out of your social security check.

Let me estimate your taxable liability. I will need your total income and filing status, and how much of your income is social security income.

Expert:  emc011075 replied 1 year ago.

I see you read my respond. Do you have any questions? Is there anything else I can help you with today?

And if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.